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Icici Bank Limited (IBN)
NYSE:IBN
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Icici Bank
(NYSE:IBN)
77Outperform
Positive Factors
Financial Performance
Record quarterly profit with net profit ahead of expectations reflects strong financial performance.
Market Position
ICICI Bank is well-positioned with a strong deposit franchise and stable asset quality, providing a competitive edge.
Negative Factors
Asset Quality Risk
Key risks include potential deterioration in asset quality and weaker earnings due to slower loan growth and net interest margins.
Interest Margin
There was a softer headline net interest margin, attributed to a diminishing contribution from the high yield book impacting the bank's funding pressure.
Icici Bank (IBN) vs. S&P 500 (SPY)
Market Cap
$119.54B
Dividend Yield0.61%
Average Volume (3M)6.06M
Price to Earnings (P/E)19.6
Beta (1Y)0.37
Revenue Growth22.15%
EPS Growth12.13%
CountryUS
Employees187,765
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.71
Shares Outstanding3,562,773,700
10 Day Avg. Volume7,287,848
30 Day Avg. Volume6,059,369
Financial Highlights & Ratios
PEG Ratio1.61
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.00Price Target Upside7.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Icici Bank Business Overview & Revenue Model
Company DescriptionICICI Bank Limited, together with its subsidiaries, engages in the provision of various banking and financial services to retail and corporate customers in India and internationally. The company operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, and Others segments. It accepts savings, salary, pension, current, trade, escrow, foreign currency, and vostro accounts, as well as time, fixed, recurring, and security deposits services. The company also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, including working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and overdraft facilities, as well as loans for new entities and card swipes; and credit, debit, prepaid, travel, forex, and corporate cards. In addition, it offers pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, initial public offerings, and other online investment services; and agri and rural business, farmer finance, tractor loans, and micro banking services. Further, the company provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, and institutional banking services; health, personal accident, fire, and motor insurance, as well as distributes general and life insurance products; and Internet, mobile, and phone banking services. Additionally, it offers securities investment, broking, trading, and underwriting services; and merchant banking, trusteeship, housing finance, pension fund management, asset management, investment advisory, points of presence, and private equity/venture capital fund management services. The company was founded in 1955 and is headquartered in Mumbai, India.
How the Company Makes MoneyICICI Bank generates revenue primarily through interest earned on various lending products, including personal loans, home loans, and corporate loans. The bank also earns income from fees and commissions on services like credit card transactions, asset management, and investment banking. Additionally, ICICI Bank derives revenue from its treasury operations and investments in government and corporate securities. The bank's earnings are also supported by strategic partnerships and collaborations with global financial institutions, enabling it to offer a broad spectrum of financial solutions to its clients.
Icici Bank Financial Statement Overview
Summary
Icici Bank exhibits a strong financial position with commendable revenue growth and profitability improvements. The balance sheet supports stability with prudent leverage management, while cash flow metrics indicate healthy cash generation and financial resilience. Continued focus on managing liabilities and maintaining cash flow strength will be crucial for sustaining long-term growth.Income Statement
Icici Bank has demonstrated solid financial performance with consistent revenue growth and improving profitability. The gross profit and net profit margins have shown notable improvement, reflecting efficient cost management. The EBIT margin has also improved, indicating operational effectiveness. However, the absence of EBITDA data in recent years limits a comprehensive assessment of underlying earnings strength.85
Very Positive
Balance Sheet
The balance sheet reflects a strong equity base with a healthy equity ratio, suggesting financial stability. The debt-to-equity ratio is moderate, indicating a balanced approach to leverage. Return on Equity (ROE) has improved, showcasing effective utilization of equity. Nonetheless, increasing total liabilities warrant cautious monitoring for future leverage implications.78
Positive
Cash Flow
The cash flow statement indicates robust free cash flow growth, enhancing the company's financial flexibility. A strong operating cash flow to net income ratio suggests good cash generation from operations, despite fluctuations in operating cash flow in previous years. The free cash flow to net income ratio confirms efficient capital expenditure management.82
Very Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.43T | 1.36T | 1.16T | 1.19T | 1.05T | Gross Profit |
| 2.36T | 1.36T | 1.16T | 1.19T | 1.05T | EBIT |
| 1.07T | 344.63B | 257.84B | 202.20B | 110.50B | EBITDA |
| 623.70B | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 442.56B | 340.37B | 251.10B | 183.84B | 95.66B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.55T | 764.89B | 807.23B | 1.08T | 1.03T | Total Assets |
| 23.64T | 19.58T | 17.53T | 15.74T | 13.77T | Total Debt |
| 2.01T | 1.89T | 1.62T | 1.44T | 2.14T | Net Debt |
| 108.69B | 526.05B | -215.23B | -36.71B | 859.99B | Total Liabilities |
| 20.94T | 17.37T | 15.65T | 14.07T | 12.48T | Stockholders Equity |
| 2.56T | 2.14T | 1.82T | 1.58T | 1.23T |
| Cash Flow | Free Cash Flow | |||
| 1.54T | -62.39B | 562.51B | 1.36T | 776.91B | Operating Cash Flow |
| 1.57T | -37.71B | 581.11B | 1.38T | 795.65B | Investing Cash Flow |
| -1.46T | -680.05B | -393.21B | -629.87B | -423.08B | Financing Cash Flow |
| 137.65B | 247.91B | 174.51B | -546.67B | 29.92B |
Icici Bank Technical Analysis
Positive
33.56
Price Trends
30.50
Positive
30.00
Positive
29.72
Positive
Market Momentum
0.89
Negative
66.33
Neutral
71.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBN, the sentiment is Positive. The current price of 33.56 is above the 20-day moving average (MA) of 32.17, above the 50-day MA of 30.50, and above the 200-day MA of 29.72, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 66.33 is Neutral, neither overbought nor oversold. The STOCH value of 71.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBN.
Icici Bank Risk Analysis
Icici Bank disclosed 63 risk factors in its most recent earnings report. Icici Bank reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Icici Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $119.54B | 19.57 | 17.89% | 0.61% | 22.15% | 12.13% | |
76 Outperform | $62.35B | 9.65 | 20.84% | 5.65% | -7.01% | 15.18% | |
76 Outperform | $58.73B | 12.32 | 9.95% | 3.66% | 36.29% | -19.79% | |
73 Outperform | $172.51B | 21.81 | 14.51% | 0.82% | 13.13% | 0.54% | |
70 Outperform | $23.73B | 7.93 | 10.44% | 1.25% | -8.55% | 13.58% | |
70 Outperform | $18.73B | 15.10 | 11.61% | 4.41% | -3.94% | 31.52% | |
63 Neutral | $12.37B | 9.56 | 7.95% | 79.17% | 12.62% | -5.26% |
* Financial Sector Average
Performance Comparison
IBN
Icici Bank
33.56
6.21
22.71%
BBD
Banco Bradesco SA
2.46
-0.06
-2.38%
BSBR
Banco Santander Brasil
5.26
-0.15
-2.77%
HDB
Hdfc Bank
72.69
15.12
26.26%
ITUB
Itau Unibanco
6.31
1.16
22.52%
LYG
Lloyds Banking
3.95
1.50
61.22%
Icici Bank Earnings Call Summary
Earnings Call Date:Apr 19, 2025
(Q2-2025)
| % Change Since: ―|
Next Earnings Date:Jul 21, 2025
Earnings Call Sentiment Neutral
The earnings call reflects strong growth in profits, deposits, and domestic loan portfolios. However, challenges such as declining net interest margins and increased write-offs on NPAs are evident. The bank's focus on digital transactions and improved asset quality are positive signs, but some areas like retail NPA additions and overseas loan portfolio decline pose challenges.Q2-2025 Updates
Positive Updates
Strong Profit Growth
Profit before tax, excluding treasury, increased by 7.9% year-on-year and 5.2% quarter-on-quarter to INR 148.10 billion. Profit after tax grew by 14.5% year-on-year to INR 117.46 billion.
Robust Loan Portfolio Growth
The domestic loan portfolio grew by 15.7% year-on-year. Retail loans grew by 14.2% year-on-year, and business banking saw a significant growth of 30% year-on-year.
Healthy Deposit Growth
Total deposits increased by 15.7% year-on-year, with term deposits growing by 15.9% year-on-year.
Improved Asset Quality
The net NPA ratio improved to 0.42% from 0.43% in the previous quarter.
Digital Transactions and Technology Investment
72% of trade transactions were done digitally, with a 20% year-on-year increase in trade online transactions.
Negative Updates
Moderate Net Interest Margin
Net interest margin decreased to 4.27% from 4.36% in the previous quarter and 4.53% in the same quarter last year.
Higher NPAs in Retail and Rural Portfolios
Gross NPA additions were INR 50.73 billion, with retail and rural portfolio additions at INR 43.41 billion.
Overseas Loan Portfolio Decline
The overseas loan portfolio in U.S. dollar terms declined by 6.9% year-on-year.
Increased Write-offs
Gross NPAs written-off during the quarter were INR 33.36 billion, indicating higher non-performing asset disposal.
Company Guidance
During the ICICI Bank Q2 FY2025 earnings call, the bank reported a profit before tax, excluding treasury, of INR 148.10 billion, marking a year-on-year increase of 7.9% and a quarter-on-quarter rise of 5.2%. The core operating profit grew 12.1% year-on-year to INR 160.43 billion. Furthermore, the profit after tax surged by 14.5% year-on-year to INR 117.46 billion. The bank's domestic loan portfolio expanded by 15.7% year-on-year, with a 4.6% sequential increase, and the retail loan portfolio saw a 14.2% year-on-year growth. Deposits grew by 15.7% year-on-year, while the liquidity coverage ratio stood at approximately 120%. The net NPA ratio slightly decreased to 0.42% from 0.43% in the previous quarter. The capital adequacy ratio remained robust at 16.66%. The bank emphasized a focus on risk-calibrated profitable growth, maintaining high governance standards, and leveraging technology and customer-centric approaches to drive market share growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.